Thrift Savings Plan funds stay in black

By Amanda Palleschi

October 1, 2012

The Thrift Savings Plan continued its steady climb upward in September, with every fund posting a positive return for the second consecutive month.

International stocks in the I Fund were the strongest performers in September, gaining 2.96 percent. The fund edged up more than 3 percent in August and has risen more than 15 percent during the past 12 months.

The C Fund, invested in common stocks on Standard & Poor’s 500 Index, and the S Fund, which is invested in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, also had solid performances in September, finishing up 2.57 percent and 2.51 percent, respectively. Both are up more than 30 percent during the past 12 months.

The government securities-based G Fund grew 0.10 percent in September. The fixed-income bonds in the F Fund grew 0.15 percent. Since January, the F Fund has gained more than 4 percent, and the G Fund has grown 1.12 percent.

TSP’s five life-cycle funds, for beneficiaries seeking to move to less risky portfolios as they near retirement, also ended September in the black. The L Income Fund, for employees who already have started withdrawing money, rose just 0.62 percent in September, but has increased more than 4 percent since January. L 2020 gained 1.52 percent; L 2030 is up 1.87 percent; L 2040 climbed 2.12 percent, and L 2050 posted the largest gain of all the life-cycle funds in September, gaining 2.38 percent.

L Income is up 6.67 percent during the past 12 months; L 2020 is up more than 15 percent during that same period; L 2030 grew 18.64 percent in the past year. L 2040 and L 2050 have each gained more than 20 percent during the past 12 months.